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A full circle- back to the centre? l Competition drives retailers back to the City Centre

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Direct Channels - clicks & bricks winning l Traditional Retailers make E-tail work! l Critical success factors are no different in the E- conomy è right product, right place, right time è Customer Service è Brand Perception l Intelligent use of the Search engines reaches the global www market l Fulfilment not gee-whiz is the need!

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Direct Channels - some winners and losers l boo.com -a really whizzy failure l technically clever l did not excite the consumer l or deliver the product l or establish a brand identity l Early Learning Centre - a brick based success l built on the Retail brand values l established fulfilment process before the www l delivered reliably l now equal to their largest store

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What do customers look for- store or brand? l Everybody shops where they feel comfortable è but comfort varies from customer to customer l I may feel fine in Littlewoods, but overwhelmed in Harrods l I believe that Waitrose is higher quality than Somerfield l Volvo make safe cars l I trust Marks & Spencer

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Attracting the Customer – The power of the Brand è is a store good enough to compete with global brands – or is it just a shopfront! – A strong brand can go Direct è Sony è BMW è British Airways è Ralph Lauren

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In the Year 2001..a dot.com e-tail business: è is most likely to have a "bricks" presence è has new low cost, high availability channels to their Customers. è provides personalised offerings to their profitable customers. è operates a quality service branded proposition. è is increasingly trusted by their customers or has become a dot.gone!

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E-tail myth or reality? l May 2001: 40% of UK homes have Internet connections è August 2001: 39% è no of net users still growing l + 900,000 September 2001- November 1st l More over 50s shop online than under 24s l 33% of Internet users visit online stores more than once per week l 40% of shoppers access the www from the office!

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The E-tail Winners l Amazon: 1.7 million UK visits in September l Marks & Spencer è best "Traditional" Retailer l reliable, secure l on line stock availability of in store products l ease of use

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Walmart - why worry? - 4 l We had said: " UK Retailers margin model under threat! could be reduced by circa 50% potential for many casualties! not just supermarkets......" l We do not like being smug, but è margins are falling è the middle market is being squeezed è there are many casualties è and more to come!

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Issue: New Channels l How to become a player - when I understand their potential? è what must we do differently? l How to integrate their operation within my core business? è I do not need to break the bits which work well è we have lots of customers in our stores l How to avoid this becoming another late, over budget IT project?! è I cannot wait for IT to learn the new skills

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Issue: IT skills & resourcing l "My IT function is already stretched, and they will not have the skills" l "I need to keep our revenue costs flat (at worst), can we afford this?"

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Issue: Best of breed vs Integration l "Retail ERP" has existed in merchandise system terms for some years è Retail Express (now owned by NSB) è Island Pacific(now owned by SVI) è JDA l However, they did not include Finance systems è typically CODA was a popular choice

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Issue: Best of breed vs Integration l SAP developed a retail version è initially relatively poor in retail depth l now on a par with NSB/JDA è expensive to implement when allied to business process review l long projects (B&Q, Homebase) u new template based systems from specialist retail implementors reducing cost and time

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Markdown - l The difference between Stock valuation at Retail prices, and how much the item was actually sold for. è a budgeted and planned item è the largest single cost after personnel è can have a make or break affect on results!

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Some real positives! l www. is a liberating experience è in gaining information è in application development l new tools enable VERY rapid deployment of collaborative and www applications l outside of the traditional IS functions l in how systems are upgraded and maintained u 24hr/remote/informed

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EDI to E-commerce l EDI (Electronic Data Interchange) is well established è between consenting retailers and suppliers è complex messages è batch operation è tends to be inflexible - it works so leave it alone l EDI has not been taken up by the SMEs è too complex and technical è requires intricate interfaces to "operational" systems

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COLLABORATIVE APPLICATION USERS l What are Collaborative Applications? è These applications are being used by major players to l reduce total inventory in the supply chain l optimise promotional sell through l They will also be used by SME retailers, suppliers and channels u as they are easier to implement than traditional IS è with easy access and usability

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Who are COLLABORATIVE APPLICATION USERS l J Sainsbury is a hub: è circa 200 in the JS "community" on promotional collaboration è and up to 500 in "Order" collaboration l Some of these community users are themselves becoming hubs è Nestle è KJS l Each of these will subscribe to the need to integrate into their Core Operational systems.